Credit Unions Are Missing the Rewards Their Members Want Most

A credit union credit card can sit in a member’s wallet for years and still miss most of the action. When rewards enter the picture, familiarity doesn’t always win the purchase.

“The Rewards Opportunity Credit Unions Can No Longer Ignore” is a PYMNTS Intelligence report produced in collaboration with Velera. It examines how loyalty and rewards programs can help credit unions capture more credit card spending, attract new members and build stronger primary banking relationships.

The opportunity starts with a simple behavior. Consumers reach for the card that gives them the best return. Many credit union members keep several cards and choose among them based on the purchase. Sixty percent of members who use multiple cards say they do so to maximize rewards or perks.

That creates a valuable opening for credit unions. They already have trusted member relationships, competitive rates and strong local ties. A well-designed rewards program can give members another reason to use their credit union credit card more often.

The report draws on surveys of more than 18,000 U.S. consumers, small- to medium-sized businesses, credit union executives and FinTech executives. The research tracks card use, banking preferences, innovation plans and demand for rewards.

In “The Rewards Opportunity Credit Unions Can No Longer Ignore,” learn how:

• Rewards can turn existing members into primary customers. Among members who keep their primary account elsewhere, 39% say better rewards could persuade them to make a credit union their main financial institution. Rewards also appeal to 37% of Generation Z consumers and 36% of millennials who currently bank elsewhere.
• Smaller institutions could close the rewards gap quickly. Only 31% of those with less than $500 million in assets offer rewards today. Another 43% plan to introduce a program within three years. Among smaller credit unions that are open to outside support, 58% expect to work with a partner.
• Member engagement has moved higher on the innovation agenda. In late 2024, 36% of credit union executives called member engagement a leading investment focus. That share reached 53% by May 2026. Credit unions that move early or follow successful programs quickly are also far more likely to offer rewards than those that wait.

Credit union members are already showing where their spending could go. The next step is to give them a program that earns a larger share.

Download the report to explore the data and see how credit unions can build rewards programs that support member growth, card use and stronger long-term relationships.

About the Playbook

“The Rewards Opportunity Credit Unions Can No Longer Ignore” is part of the PYMNTS Intelligence Credit Union Innovation series, produced in collaboration with Velera. This report examines how rewards and loyalty programs shape credit union member acquisition and engagement. The study drew on four survey instruments. Consumers: 14,218 U.S. respondents surveyed in March 2026 on card behavior, card-choice factors and banking-feature demand. Small to medium-sized businesses: 3,529 U.S. respondents surveyed in March 2026 on business card behavior and institution preferences. Credit union executives: 500 respondents surveyed in May 2026 on rewards-program status, innovation focus and partnership strategy. FinTech executives: 100 respondents surveyed in April 2026 on product roadmaps and credit union collaboration.

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